Crypto Markets Plunge as Leverage Flush and Nikkei Reversal Take Toll

Crypto markets have been experiencing another downturn, with BTC USD falling below $63,000 and ETH USD suffering a brutal bloodbath. The main culprit behind this drop is believed to be the leverage flush, where long positions were liquidated, resulting in $580 million in losses within 24 hours.

The Nikkei's reversal after hitting an all-time high yesterday also contributed to the negative mood, causing risk appetite across Asia to evaporate. Retail traders in Korea, Japan, and Southeast Asia started selling into exchanges, with Binance taking in the largest inflows during the session.

Additionally, spot Bitcoin ETF outflows continue to pressure the market, removing a layer of consistent buying that was propping up prices before. The combination of these factors made it difficult for BTC USD to find any real footing, resulting in its drop below $63,000 and breaking all supports.